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Lease Obligations
 12 Months Ended
Dec. 29, 2012
Leases [Abstract]  
Lease Obligations
Lease Obligations
At year-end 2012, Safeway leased approximately 55% of its stores. Most leases have renewal options, typically with increased rental rates during the option period. Certain of these leases contain options to purchase the property at amounts that approximate fair market value.
As of year-end 2012, future minimum rental payments applicable to non-cancelable capital and operating leases with remaining terms in excess of one year were as follows (in millions):
 
Capital
leases
 
Operating
leases
2013
$
75.5

 
$
478.8

2014
72.9

 
455.4

2015
71.3

 
403.5

2016
66.0

 
360.2

2017
60.3

 
307.3

Thereafter
393.4

 
2,079.0

Total minimum lease payments
739.4

 
$
4,084.2

Less amounts representing interest
(291.6
)
 
 
Present value of net minimum lease payments
447.8

 
 
Less current obligations
(36.2
)
 
 
Long-term obligations
$
411.6

 
 

Future minimum lease payments under non-cancelable capital and operating lease agreements have not been reduced by future minimum sublease rental income of $164.7 million.
Amortization expense for property under capital leases was $30.0 million in 2012, $28.5 million in 2011 and $29.8 million in 2010. Accumulated amortization of property under capital leases was $321.6 million at year-end 2012 and $303.1 million at year-end 2011.
The following schedule shows the composition of total rental expense for all operating leases (in millions):
 
 
2012
2011
2010
Property leases:
 
 
 
Minimum rentals
$
458.7

$
452.2

$
447.9

  Contingent rentals (1)
8.3

8.1

8.8

Less rentals from subleases
(10.5
)
(9.0
)
(8.7
)
 
456.5

451.3

448.0

Equipment leases
24.7

24.4

26.5

 
$
481.2

$
475.7

$
474.5

 (1) In general, contingent rentals are based on individual store sales.